Stanley Black & Decker (NYSE:SWK) Releases Earnings Results, Beats Expectations By $0.14 EPS

Stanley Black & Decker (NYSE:SWK) issued its quarterly earnings data on Wednesday. The industrial products company reported $1.41 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.27 by $0.14, Briefing.com reports. Stanley Black & Decker had a return on equity of 7.90% and a net margin of 2.66%.The business had revenue of $3.68 billion during the quarter, compared to analyst estimates of $3.78 billion. During the same period in the previous year, the firm earned $1.49 EPS. Stanley Black & Decker’s quarterly revenue was down 1.0% compared to the same quarter last year. Stanley Black & Decker updated its FY 2026 guidance to 4.900-5.700 EPS.

Here are the key takeaways from Stanley Black & Decker’s conference call:

• Full‑year Adjusted Gross Margin expanded to 30.7% (Q4: 33.3%) and the company completed its global cost reduction program, capturing $2.1 billion of run‑rate pre‑tax savings while targeting ~3% annual productivity and a >35% gross margin goal by Q4 2026.
• Adjusted EPS rose 7% to $4.67, Adjusted EBITDA grew 5%, and Free Cash Flow was nearly $700M for 2025 (Q4 FCF $883M), which management used for dividends, debt paydown and growth investments.
• Announced a definitive agreement to sell the CAM (aerospace fasteners) business for ~$1.8B gross (net proceeds ~$1.525–1.6B) to materially reduce debt, expected to cut leverage by ~1–1.25 turns and bring net debt/EBITDA to ≤2.5x, increasing capital allocation flexibility.
• Top‑line pressure persists: total revenue was down 1% (organic -3%) in Q4 with a 7% volume decline; management expects continued volatility into Q1 as peak 2025 tariff expense rolls into the P&L and guided Q1 sales of ~ $3.7B with EPS $0.55–$0.60 and roughly flat gross margin.
• Strategic portfolio moves will reduce reported revenue in the near term — management will transition gas‑powered walk‑behind outdoor products to a licensing model (reducing revenue by ~$120–140M in 2026 and ~$150–170M in 2027) while positioning those businesses for higher margins.

Stanley Black & Decker Price Performance

Shares of NYSE:SWK traded up $4.45 during trading on Friday, hitting $90.02. 492,928 shares of the company were exchanged, compared to its average volume of 1,934,640. Stanley Black & Decker has a 1-year low of $53.91 and a 1-year high of $90.75. The company has a market capitalization of $13.94 billion, a P/E ratio of 34.05, a price-to-earnings-growth ratio of 1.18 and a beta of 1.21. The company has a quick ratio of 0.35, a current ratio of 1.14 and a debt-to-equity ratio of 0.52. The business’s 50 day moving average is $77.63 and its 200-day moving average is $73.68.

Wall Street Analysts Forecast Growth

SWK has been the topic of a number of recent research reports. Wall Street Zen lowered Stanley Black & Decker from a “buy” rating to a “hold” rating in a research report on Sunday, October 19th. UBS Group dropped their price objective on Stanley Black & Decker from $105.00 to $98.00 and set a “buy” rating on the stock in a research note on Monday, January 5th. Citigroup reiterated a “buy” rating on shares of Stanley Black & Decker in a report on Friday. The Goldman Sachs Group restated a “neutral” rating and issued a $84.00 price target on shares of Stanley Black & Decker in a research note on Thursday. Finally, Weiss Ratings reissued a “hold (c)” rating on shares of Stanley Black & Decker in a research report on Wednesday, January 21st. Five analysts have rated the stock with a Buy rating, five have given a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat, the stock has an average rating of “Hold” and an average target price of $85.38.

Institutional Investors Weigh In On Stanley Black & Decker

A number of institutional investors have recently made changes to their positions in SWK. Chapman Financial Group LLC bought a new stake in Stanley Black & Decker in the second quarter valued at approximately $26,000. CYBER HORNET ETFs LLC acquired a new position in shares of Stanley Black & Decker in the 2nd quarter worth approximately $28,000. MUFG Securities EMEA plc bought a new stake in shares of Stanley Black & Decker in the 2nd quarter valued at $31,000. Advisory Services Network LLC acquired a new stake in shares of Stanley Black & Decker during the third quarter worth $35,000. Finally, Caitong International Asset Management Co. Ltd raised its stake in Stanley Black & Decker by 2,317.6% during the third quarter. Caitong International Asset Management Co. Ltd now owns 822 shares of the industrial products company’s stock worth $61,000 after buying an additional 788 shares during the last quarter. Institutional investors own 87.77% of the company’s stock.

About Stanley Black & Decker

Stanley Black & Decker, Inc (NYSE:SWK) is a leading global manufacturer of industrial tools, engineered fastening systems, and security products. The company’s portfolio includes power tools, hand tools, accessories, and storage solutions marketed under well-known brands such as DEWALT, Stanley, Craftsman and Black & Decker. In addition to its core tools and hardware offerings, the company provides customized assembly and installation systems for the automotive, electronics and aerospace industries.

Operations are organized across three principal business segments.